Issue 49

Shanghai Weekly Bulletin

No.3, June 2024

Shanghai Weekly Bulletin is an information service presented by the Foreign Affairs Office of Shanghai Municipal People's Government in collaboration with Wolters Kluwer to foreign-funded enterprises, foreign-related institutions as well as people from overseas living in Shanghai. Covering major national and Shanghai foreign-related news, event information, policy Q&A and interpretations in the past week, it keeps you up-to-date with the latest foreign-related policies and developments in Shanghai.

 

Laws and Regulations

【National】

1. China Unveils Regulations on Fair Competition Review

【Keyword: Fair Competition】

The Chinese government released on June 6, 2024 the Regulations on Fair Competition Review, which will take effect on August 1, 2024. Consisting of 27 articles in five chapters, the rules clarify that administrative organs and organizations legally authorized to manage public affairs must conduct fair competition review when they draft laws, administrative regulations, local regulations, rules, normative documents and policies related to business activities.

Source: Website of the Chinese Government 

 

2. China to Expand Cross-border E-commerce Exports and Overseas Warehouses

【Keyword: Cross-border E-commerce】

China's Ministry of Commerce (MOFCOM) and other eight government departments released on June 8, 2024 the Guidelines on Expanding Cross-border E-commerce Exports and Advancing the Construction of Overseas Warehouses. The document outlines 15 measures in five aspects, including cultivating cross-border e-commerce business entities, increasing financial support, pushing for the construction of infrastructure and logistics system, improving supervision and services, and carrying out the work related to the establishment of standards and rules and international cooperation. 

Source: MOFCOM 

 

【Shanghai】 

1.    Shanghai Supports Scientific and Technological Innovation with Favorable Policies

【Keywords: Scientific and Technological Innovation; Preferential Tax & Fee Policies】

Shanghai Municipal Tax Service of the State Taxation Administration and Shanghai Municipal Bureau of Finance recently issued the Shanghai Guidelines on Preferential Tax & Fee Policies for Scientific and Technological Innovation. The document covers venture capital, preferential policies for attracting and cultivating talents, research and experimental development, application of scientific and technological advances, development of key industries, the entire industrial chain, and appendices.

Source: Shanghai Municipal Tax Service of the State Taxation Administration

 

 

One Week in Shanghai

【Latest News】 

1. 10th China (Shanghai) International Technology Fair Kicks off

【Keyword: China (Shanghai) International Technology Fair】

The 10th China (Shanghai) International Technology Fair was held at the Shanghai World Expo Exhibition & Convention Center on June 12-14. Under the theme "Exploring a Green Future in the Digital Era", the fair features themed exhibition zones, as well as exhibition zones for energy and low-carbon technologies, digital technologies, biomedicine technologies, and innovation ecosystem and services, covering a total area of 35,000 square meters. The fair has showcased innovation achievements from 10 countries and regions and 19 provinces, autonomous regions and municipalities in China, with nearly 1,000 participating companies.

Source: International Services Shanghai

 

2. Shanghai Releases Video Series "How to Pay in Shanghai" 

【Keyword: Payment】

Shanghai Head Office of the People's Bank of China and the Foreign Affairs Office of Shanghai Municipal People's Government jointly produced a series of videos named "How to pay in Shanghai", which are tailored to foreign visitors. The series consists of five videos: the teaser trailer, mobile payment, cash payment, currency exchange, and card payment.

Source: Shanghai Foreign Affairs Office

 

3. Shanghai Launches "One-stop" Due Diligence Inspection Service

【Keywords: Real Estate; Due Diligence】

The "one-stop" due diligence inspection has been officially launched on Shanghai's "One-stop Online Service". From the homepage of "One-stop Online Service", users can enter the "Real Estate Registration Network" to get access to the "one-stop" comprehensive inquiry service. The service currently collects real estate information, enterprise information and zone planning, state-owned land use rights transfer, real estate transactions, construction permits, drainage permits and other information.

Source: Shanghai Municipal Bureau of Planning and Natural Resources 

 

【Forum & Exhibition】 

1. Electronica China 2024 to Open in July

【Keyword: Electronica China】

The Electronica China 2024 will be held at the Shanghai New International Expo Center from July 8 to 10, 2024. The exhibition will set up theme zones dedicated to semiconductors, sensors, passive components, connectors and wiring harnesses, power supplies, testing and measurement devices, printed circuit boards, displays, distributors, electronic manufacturing services, and intelligent manufacturing, bringing together high-quality electronic companies to create a professional platform spanning from product design in the upstream to application in the downstream.

Source: Shanghai Convention & Exhibition

 

2. "Design Shanghai 2024" to Open Soon

【Keyword: Design Shanghai】

The Design Shanghai 2024 will return to the Shanghai World Expo Exhibition & Convention Center on June 19-22. This year's event will come with a new visual image, inviting more than 600 design brands from 40 countries and regions to present the diversity and innovation of designs in different categories through four exhibition halls for furniture and lighting design, kitchen and bathroom design, lifestyle and accessories design, and new materials and applications, and explore the integration and balance of Eastern and Western design concepts.

Source: Design Shanghai

 

【Culture & Art】 

1. 2024 Shanghai Night Festival Kicks off

【Keyword: Shanghai Night Festival】

The 2024 Shanghai Night Festival kicked off on June 6, and will be running until September. With the theme "Tonight Is the Night", the festival will feature a number of special activities, including Museum Wonderful Night, Zoo Wonderful Night, Sports Night, E-Sports Night, Terrace Season, Park Season, Waterfront Season, etc.

Source: Shanghai Night Festival

 

2. Shanghai Unveils First Batch of Cultural Heritage-themed Tour Routes 

【Keywords: Cultural Heritage-themed; Tour Routes】

With an in-depth exploration of Shanghai's urban historical and cultural resources and based on the types, characteristics and geographical locations of cultural relics, Shanghai Municipal Administration of Culture and Tourism recently unveiled ten cultural heritage-themed tour routes that connect historical buildings, famous attractions and intangible cultural heritage experiences. 

Source: International Services Shanghai

 

3. Campana Brothers Hold First Asian Exhibition in Shanghai

【Keyword: Campana Brothers】

An exhibition entitled "Impermanence - 40 Years of Estúdio Campana" is being held at the Power Station of Art, Shanghai from June 8 to September 8, 2024. It will display more than fifty groundbreaking works. The exhibition hall will be divided into three thematic sections, namely "Manual Act", "Expressive Act" and "Social Act".

Source: Power Station of Art, Shanghai

 

【Corporate Activities】

1. Intuitive Fosun Inaugurates Headquarters Industrial Base in Shanghai

【Keyword: Intuitive Fosun】

The inauguration ceremony of the Intuitive Fosun Headquarters Industrial Base was held on June 12, 2024 at the Shanghai Zhangjiang International Medical Park. With a total investment of about 700 million yuan, the project is the company’s largest base integrating R&D, production and training in the Asia-Pacific region. It is reported that in the initial stage, the new base will focus on the production of da Vinci surgical robots and some components of the Ion system.

Source: Pudong Release

 

【Training】

1. Smart Manufacturing Branch Holds Session on Special Policies for Smart Factories

【Keyword: Smart Factories】

The Smart Manufacturing Branch of Shanghai Foreign Investment Association will invite experts from Shanghai Economic and Information Development Research Center, Shanghai Institute of Electrical Technology, Electric Automation Group, China Mobile Shanghai, Shanghai Institute of Automation and Shanghai Jiaotong University Zhibang Digital Technology to introduce the special policies for smart factories and share practical cases on June 20, 2024.

Source: Shanghai Foreign Investment Association

 

Q&A

Q1: Q&As on matters related to visa-free entry of foreigners to China in accordance with the mutual visa exemption agreement - Do foreign nationals from countries with which we have mutual visa exemption need to register their accommodation after entering China visa-free?

A1: Article 39 of the Exit and Entry Administration Law of the People's Republic of China stipulates that where foreigners stay in hotels in China, the hotels shall register their accommodation in accordance with the regulations on the public security administration of the hotel industry, and submit foreigners' accommodation registration information to the public security organs in the places where the hotels are located. For foreigners who reside or stay in domiciles other than hotels, they or the persons who accommodate them shall, within 24 hours after the foreigners’ arrival, go through the registration formalities with the public security organs in the places of residence. According to the above regulations, foreign nationals from countries with which China has mutual visa exemption must register their accommodation after entering China visa free. 

The "Arrival Card" filled out by foreign nationals when entering China has already informed foreigners of the matters related to accommodation registration in both Chinese and English languages in the "Important Notes" Section. Please follow the relevant instructions to handle foreigners' accommodation registration. China's immigration management agencies and public security organs have further simplified the registration items and will make full use of Internet technology to streamline registration formalities to improve the convenience of travel and residence in China.

Source: National Immigration Administration

 

 

Expert Perspective

Several Issues to Be Watched and Addressed by Foreign Businesses under New Company Law

By: He Kan, Chen Leyi, Gao Fangjiao, Liu Zijing, Yang Yanhua (Junhe Law Firm)

[Continuing from the Last Issue]

Conclusion

The comprehensive revision of the New Company Law will bring significant changes to all aspects of foreign-funded companies. This article combs through major issues that foreign companies need to pay attention to in the context of the New Company Law from five aspects, including the connection with the Foreign Investment Law and the arrangements during the transition period, corporate governance structure, the rights and responsibilities of directors, supervisors and senior managers, shareholders' capital contribution obligations, and exit mechanisms. In order to reduce compliance risks after the New Company Law comes into effect, foreign-funded companies and their shareholders, actual controllers, directors, supervisors and senior managers should pay close attention to and understand the latest legal requirements and detailed rules and regulations issued by regulatory authorities, and adjust and update relevant matters based on their actual conditions.